Compressed Profit MarginsGross and net margins remain thin versus historical levels, reducing underlying earnings power. Persistent margin compression limits reinvestment capacity and makes earnings sensitive to cost inflation or pricing pressure in last‑mile operations, weighing on sustainable profitability.
Weak Cash ConversionFCF at roughly 24% of net income indicates profits are not fully converting to cash, likely from working capital or timing effects. Weak conversion reduces durable financial flexibility to pay down debt, smooth dividends, or invest without external funding if margins remain pressured.
Rising Leverage TrendThe upward shift in leverage to ~0.42 from prior lower ranges signals reduced balance‑sheet headroom. Increasing debt levels heighten refinancing and interest risk, constraining capital allocation if operating margins deteriorate or investment needs rise in the medium term.